Operating Profit
Profit is made when revenue exceeds costs.
If a project revenue exceeds project cost - it generates profit (or income).
Operating Profit - OP
can be expressed as
OP = Σ R - Σ C (1)
where
OP = operating profit
R = project revenue
C = project cost
Operating Profit Percentage - OPP
can be expressed as
OP = 100 (Σ R - Σ C) / Σ R (2)
